01 snc overview final
DESCRIPTION
SNC OverviewTRANSCRIPT
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1SAP SNC 7.0Supply Network Collaboration
SAP SNC Solution Overview
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2 SAP 2009 / Page 2
SAP SNC Supply Network Collaboration
This unit contains an overview about the SAP SNC 5.1 regarding the following topics:
z SNC Overview z SNC Market & Customer situationz SNC Roadmap
Contents:
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3 SAP 2009 / Page 3
Unit Objectives
z Explain the Esentials of SAP SNC 2008z Explain the processes of SAP SNC 2008 z Name the high-level delta features of SAP SNC 2008
At the conclusion of this unit, you will be able to:
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4 SAP 2009 / Page 4
SAP SNC Supply Network Collaboration
1. SAP SNC Fundamentals2. Customer Collaboration 3. Supplier Collaboration & Contract Manufacturing4. SAP SNC 7.0 Architecture & Integration5. SAP SNC Customer & Market situation6. SAP SNC Roadmap
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5 SAP 2009 / Page 5
SAP SNC Supply Network Collaboration
1. SAP SNC Fundamentals2. Customer Collaboration 3. Supplier Collaboration & Contract Manufacturing4. SAP SNC 7.0 Architecture & Integration5. SAP SNC Customer & Market situation6. SAP SNC Roadmap
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6 SAP 2009 / Page 6
Lack of Visibility Beyond the Four Walls
Poor CustomerService
Globalization and Outsourcing
Positioning: Customer Challenges and Trends Drive Strategy for Supply Chain Collaboration
Globalization & Outsourcing Have resulted in stretched supply chains and increased risk. Timely analysis, response,
and resolution of supply chain issues is Impossible due to lack of control.
Lack of Visibility beyond the four walls Anticipating the next supply chain disruption is not possible due to lack of visibility.
Rising Energy and Fuel Costs Have increased cost and challenges of compliance and transportation
Poor Customer Service Inability to sense and respond to real time demand signals
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7 SAP 2009 / Page 7
Positioning: Evolution of Supply Chain Networks
Increase Supply Network Visibility& Collaboration *now the main source of competitive advantage: Real time visibility of inventory, incoming supply, component consumption and carrier information. And the ability to share this information collaboratively with all stakeholders in a timely manner Collaborative Demand & Supply Planning A recent Economist study cited that 80% of executives expect demand not supply to drive future production of goods and services. This can only be achieved through a focused effort to capture and manage demand data. As companies move to a more demand-driven approach, they must first capture and manage demand data from the diverse channels they serve. Then there is the cross-departmental, integrated sales and operations planning (S&OP) process that involves creating and comparing your demand plan and your supply plan, then reconciling these with your financial plan. The S&OP team should then evaluate the risks and assumptions involved and produce one comprehensive plan that addresses key tradeoffs between sales, production, and finance. An finally leverage integrated planning processes that enable trading partners to synchronize demand and supply plans and respond to network events and changes. This involves setting goals and forecasts, as well as optimizing and scheduling time, materials, and other resources at the strategic, tactical, and operational levels.Streamline Transportation & Fulfillment -Strive to Deliver the Perfect Order Companies striving for the perfect order. Companies need warehouse, transportation, available-to-promise, and event management capabilities integrated with each other on a single platform; this fulfillment network, if its real-world aware, enables an organization to monitor information, measure activities, notify involved parties, and execute accordingly so that customers receive that perfect order.Minimize Supply Chain Risk & Compliance Across the Network As supply chains get stretched it is increasingly important to manage Risk and Compliance at all levels. At a strategic level by designing resilience into the network, tactically to balance opportunity with risk and during Execution by sensing & responding to events in the network.Increase Real World Awareness In order for the network to be responsive, they need to constantly be sensing real world events before and as they happen AND devise intelligent strategies to respond to them in a timely manner. Rise of technologies like RFID, Sensors and Asset monitoring capabilities are enabling companies to detect, collaborate and respond to real time events. Business Networks against Business Networks
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8 SAP 2009 / Page 8
Positioning: SAP SNC A 360 View On Collaboration
Extend Your Enterprise to Encompass Suppliers, Contract Manufacturers and Customers
SAPs Collaboration Engine: Out-of-the-Box Collaborative Business Processes
Innovative: Intuitive, Easy to Learn, and Easy to Use Web-User Interface
Utilizes SAP NetWeaver Platform: Open and Real Time Communication Between Your Internal Systems and Customers & Suppliers
Real-Time Collaboration between Suppliers and Customers using out-of-the-Box Collaborative Business Processes
Automate End-to-End Processes to enable Inventory and Requirements Visibility for Accurate Replenishment & Invoicing
Empower your Employees and Network Partners with Intuitive, Easy to Learn, and Easy to Use Web-User Interface
Improve Data Quality and Accuracy using Standards based & Service enabled Connectivity between your SAP ERP and partner systems
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9 SAP 2009 / Page 9
Powered by SAP NetWeaverXML Message Exchange
SAP SNC 7.0
The Enabler:SAP Supply Network Collaboration (SAP SNC 7.0)
Drive your Business Vision and Strategy The Focus of SAPs Strategic Supply Chain
Collaboration Efforts Real-Time Collaboration with Suppliers and
Customers Out-of-the-Box Collaborative
Business Processes
Execute your Collaborative Business Processes Automated End-to-End Processes Enable Inventory and Requirements Visibility Improve Data Quality and Accuracy
Empower your Employees and NetworkPartners Intuitive, Easy to Learn, and Easy to Use Multiple Alert and Notification Methods Native Web User Interface
Supplier Managed Inventory
Master Data DataValidation
Release Process
ExceptionManagement
Supply Network
Inventory
Purchase Order
Process
Dynamic Replenish-
ment
Web-Based User Interface
Business Processes
Basic Services
User Interaction
Kanban Process
Delivery Control Monitor
Responsive Replenish-
ment
Contract Manufacturing
Purchasing
Demand Collaboration
Work Order Collaboration
Min/Max VMI
The answer lies in the SAP Supply Network Collaboration (SAP SNC) application, part of the SAP Supply Chain Management (SAP SCM) application. This application, SAP Supply Network Collaboration, helps suppliers operating SAP or non-SAP systems execute collaborative processes through a range of supply, demand, and inventory replenishment processes.
SAP Supply Network Collaboration helps you connect to and collaborate with your suppliers by providing easy, and seamless access to supply chain information. This application facilitates your ability to synchronize supply with demand. Offering support for raw-material, component, and contract-manufacturing suppliers, it helps you strengthen your purchasing operations and your supplier relationships with suppliers of direct materials.
With supplier-collaboration processes, you can cooperate with suppliers of all sizes to reduce transactional costs by replacing fax and e-mail as primary modes of communication. Smaller suppliers without specialized EDI infrastructures can integrate into the supply network by setting up Web access to SAP SNC in their software landscapes. All they need is Internet access and Web browsers.
You can deploy SAP Supply Network Collaboration as a stand-alone application, or integrate it with SAP or non-SAP back-end solutions on the customer and supplier sides. You can also operate it in a hosted environment where it serves as a joint-use platform for all business supply chain partners involved in the process.
SAP Supply Network Collaboration supports exceptions-based processes that let your suppliers view the status of materials at customers plants, receive automatic alerts when inventory levels runs low, and respond quickly over the Web. It also supports net-demand release and purchase-order processes, a kanban process, dynamic replenishment, supplier-managed inventory (the industry-standard replenishment process), a delivery control monitoring process, a supply network inventory process, and a contract manufacturing procurement process as well as packaging and label-printing functions.
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SAP 2009 / Page 10
Major Industries and Their Requirements: SAP SNC
CP: Customer Collaboration: Responsive Replenishment, Demand
Management and In-Context Analytics High Tech: Supplier Collaboration: Contract Mfg (batch traceability, quality
collaboration) Customer Collaboration: Demand-side process Customer Program
managementMill Products: Supplier Collaboration (and Customer Collaboration) Variant Configuration
supportChemicals/Pharma: Supplier Collaboration: Contract Mfg with batch handlingA&D: Supplier Collaboration: Contract Mfg (with batch, serial number handling)IM&C: Supplier Collaboration: General
Please note that this is only an extract of the major industries. SAP SNC can be used moreor less in all industries and they have also their own industry-specific requirements
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SAP 2009 / Page 11
SAP SNC Supply Network Collaboration
1. SAP SNC Fundamentals2. Customer Collaboration3. Supplier Collaboration & Contract Manufacturing4. SAP SNC 7.0 Architecture & Integration5. SAP SNC Customer & Market situation6. SAP SNC Roadmap
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SAP 2009 / Page 12
My Company
Customers
DemandCollabor
ation
Forecast
(Baseline/Promotion)
Revised Forecast
(Baseline/Promotion)
SAP SNC Customer Collaboration Demand Collaboration
Sales (Baseline/Promotion)
Demand Forecast Collaboration allows comparison and consensus between consumption data and customer transmitted forecast
Demand Forecast Collaboration. . .
Offers a time bucketed, on-screen, collaboration and workflow driven capability to reach a consensus forecast between customers and suppliers
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SAP 2009 / Page 13
My Company
Customers
ASNs
Inventory NumberRanges
BaselineOrders
Order Forecast
Promotion Orders
Promotion Plans
Responsive Replenishment
Sales
SAP SNC Customer CollaborationResponsive Replenishment
Forecast
Responsive Replenishment represents the next generation in Demand driven Replenishment
Responsive Replenishment . . .
Is a real-time, demand-driven, replenishment scenario between supplier and customer including up and down shifts of orders and shipments in the short term (next generation VMI)
Manages promotional items separately thru-out end-to-end replenishment process and optimizes truck loads
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SAP 2009 / Page 14
My Company
Customers
ASNs
Inventory
NumberRanges
Orders
Order Forecast
Min/Max Replenishment
SAP Supply Network Collaboration Customer Collaboration Functionalities
SalesForecast
Min-Max replenishment is a simple stock level based replenishment process
Min/Max Replenishment . . .
Allows for traditional VMI replenishment scenarios using maximum and minimum stock limits as driver
Can be used without promotional and truck load building functionality
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SAP 2009 / Page 15
SAP SNC Supply Network Collaboration
1. SAP SNC Fundamentals2. Customer Collaboration 3. Supplier Collaboration & Contract Manufacturing4. SAP SNC 7.0 Architecture & Integration5. SAP SNC Customer & Market situation6. SAP SNC Roadmap
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SAP 2009 / Page 16
My Company
PO Process
Release Process
SMI Process
Kanban Process
DCM (Reorder Point) Process
Additional Process Features: Confirmations (Date & Qty Changes by Supplier) on Purchase Orders ASNs (Ship Notifications) On All Processes (Packaging Capability with Bar Code/Label Printing) Invoices (Supplier Creates Invoices via the Web), Includes Regular and ERS Invoices (Self-Billing) Alerts for Exceptions (Includes e-mail notifications) BW Reporting Content for Alerts and Supplier Performance based on Alerts
DR (Forecast) Process
Main Features: Supplier Collaboration with SAP SNC: Raw Material/Component Supply
Purchase Order Process allows for the customer to send out Purchase Orders to the supplier using the web-based application SAP SNC. The Purchase Orders are typically generated as part of the customer's MRP run, or are manually created by the customer. The suppliers can view the PO's by status, enter free text notes and print/download as well. The supplier can enter confirmations/order responses indicating which date and quantity that can be committed to. At time of shipment, the supplier can create ASN messages as well, which together with the confirmations update the customer's ERP system.Release Process allows for the customer to send out Scheduling Agreement Release Updates to the supplier using the web-based application SAP SNC. The SA Releases are typically generated as part of the customer's MRP run. The suppliers can view the various "release updates", compare the differences between older and newer updates and print/download as well. At time of shipment, the supplier can create ASN messages as well, which updates the customer's ERP system. KANBAN Process allows for the customer to send out KANBAN replenishment signals to the supplier using the web-based application SAP SNC. The KANBAN signals are typically generated as part of the customer's MRP run, or are manually created by the customer. The suppliers can view the KANBANs by status, control cycle ID, KANBAN ID, product number and print/download as well. The supplier has access to one main screen environment for KANBAN processing ("dashboard"), from which, at time of shipment, the supplier can create ASN messages that updates the customer's ERP system.SMI allows for a shift of net replenishment planning and execution from the customer to the supplier. The supplier uses gross demand (dependent requirements) and stock balance to calculate a replenishment plan based on min/max logic, and subsequently converts the plan into Purchase Orders and ASNs at time of shipment. The PO's and ASNs are sent back to the customer's ERP system as indication of commitment from the supplier. PO's are optional in the SMI process; the replenishment plan can be converted directly into ASNs if needed.
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Delivery Control Monitor (DCM) allows for a shift of net replenishment planning and execution from the customer to the supplier. The supplier uses stock balance updates and preset signal levels (reorder points) to understand when replenishment needs to take place. The replenishment is based on min/max inventory limits, and the DCM functionality calculates the suggested replenishment quantities using the maximum level as the upper limit.Dynamic Replenishment (DR) allows for a comparison of customer and supplier planning data in a one screen environment were deviations between customer's plan and supplier's plan are shown as absolute numbers and percentages. There are also color-coded thresholds that visualize the deviations on screen. The customer's ERP system is used for extracting data like Planned Orders and Purchase Requisitions which is shown as "customer plan" values in SAP SNC, same thing for already created PO's which are shown as "customer order" values. The supplier can send in, or enter the corresponding responses via the web, for the "supplier plan" and "supplier order" values.
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SAP 2009 / Page 18
My Company
CMP (Subcon PO) Process
Work Order Process
SNI Process
Additional Process Features: Contract Manufacturing Purchasing (CMP) equals Subcontracting POs in ERP (POs with a BOM)
Changes to the components in BOM possible along with approval procedure Work Order Process offers the most granular functionality for tracking production progress at CM
Includes BOM and Phases (routing) collaboration with approvals/reject procedure Advanced features calculate projected end date and finished goods qty in mid production WO exists only in SNC. It is initiated via a subcon PO or regular PO from SAP ERP
Supply Network Inventory (SNI) is a time-bucketed supply and demand monitoring capability On-hand stock, supply, demand and a calculated future stock per time bucket with min/max limits for monitoring Cross-plant, cross business partner views on supply and demand including aggregation capabilities
Main Features: Supplier Collaboration with SAP SNC: Contract Manufacturing Supply
Real-time, synchronized, collaboration on subcontracting POs enable more accurate execution between a customer and a contract manufacturer Customer can change or cancel Subcon POs and items Approval process based on rules such as quantity and date deviations can be done via web
UI, includes collaboration on components used Customers ERP system gets periodical updates of components consumption at the contract
manufacturers location Includes supplier invoice creation based on shipments, or ERS handling of invoices, and
payment status updates
Real-time, synchronized, collaborative Work Orders enable more accurate execution between a customer and a contract manufacturer Work Orders exist as a collaborative object and facilitator of manufacturing status data
between a customer and a contract manufacturer Advanced on-screen collaboration on Work Order initiation, changes and updates based on
statuses Collaborate on order BOMs up front, before production starts Project finished goods end date and quantity using production phase updates Capture component consumption periodically and update ERP accordinglySupply Network Inventory is a cross-partner supply, demand and inventory monitoring and visibility process Customers, Suppliers, Contract Manufacturers and 3PLs can all update their individual
supply, demand and inventory positions Configurable visibility concept as to which partner and user has access to another partners
data Proactive monitoring using min/max thresholds on calculated future inventories Allows for aggregation of data across multiple plants belonging to different partners
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SAP 2009 / Page 19
CUSTOMER
Main Features: Supplier Collaboration with SAP SNC: Collaboration Methods
Web Browser
SAP NetWeaver
Low
Vol
ume
W
eb B
row
ser O
nly
SAP XI
Hig
h Vo
lum
e
B2B
Inte
grat
ed
Backend System
BackendSystems
Up/Down Load FilesM
id V
olum
e
Web
& F
ile U
p/D
own
Load
s
SUPP
LIER
S &
CO
NTR
AC
T M
FGS
Browser
XML
File Up/Down Load
SNC
Developing collaborative relationships is not always easy, since each partner has different technical capabilities. For example, connecting to a supplier with limited technical capabilities can be costly, complicated, and time-consuming.
Telephone, fax, and e-mail remain the most common methods of communication. Even though electronic data interchange (EDI) may be a more reliable communication resource, it is cost-effective only in high-volume situations that involve large expenditures.
How, then, can you extend the benefits of streamlined collaboration to your entire ecosystem? How can you get all your partners to connect automatically, as well as efficiently, and cost-effectively to your internal processes?
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SAP 2009 / Page 20
SAP SNC Supply Network Collaboration
1. SAP SNC Fundamentals2. Customer Collaboration 3. Supplier Collaboration & Contract Manufacturing4. SAP SNC 7.0 Architecture & Integration5. SAP SNC Customer & Market situation6. SAP SNC Roadmap
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SAP 2009 / Page 21
Architecture SNC 7.0
SNC Server
RDBMS
SAP SCM Basis 7.0
SAP SNC 7.0
Application / Database Server
SCM Server
RDBMSApplication / Database Server
SAP SNC as Add-on SAP SNC as part of SCM
SAP NW 7.01SAP NW 7.01
liveCache
SAP SCM 7.0 ServerSCM, EWM, SNC, EM
SAP SCM Basis 7.0
Advantages
It is possible to use other SCM components on the instance Mandatory for some functionalities (i.e. extended planning features) Supported Upgrade from a existing SAP ICH/SNC 5.0 / 4.1
Advantages Less support package implication smaller system and hardware requirements Separation SNC vs. SCM-Planning for a DMZ
Risks No supported upgrade path to a full SCM server No full functionality
SAP SNC can be deployed on SCM Server or as stand alone SNC
For details please refer to the SNC 7.0 Master Guide
Please not that stand alone SNC is only supported for Supplier Collaboration
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SAP 2009 / Page 22
Architecture SNC 7.0
Example: SAP SNC as stand alone SNC for a Supplier Collaboration
SNC Server
SAP SCM Basis 7.0
SAP SNC 7.0
SAP NW 7.01
ERP Server
SAP ERP 6.0
SAP NW 7.01
Master data
Transactional data
SAP NW 7.01 usage type PI
Supplier
Supplier(Webinterface)
For details please refer to the SNC 7.0 Master Guide
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SAP 2009 / Page 23
Landscape Example SNC 7.0
SAP SNC is available for many platforms*
SCM Server
RDBMS
SAP SCM 7.0SCM Server
Application / Database Server
Frontend SAPGui 7.1NW Business Client V1.0Web BrowserMS IE, Firefox
MS Server2003
MS XP Prof.
MS Vista32/64
MS SQLDB2OracleMax DB
WindowsAIXHP-UXSolarisLinux Suse
* For details please refer to the product availability matrix The availability is limited from the NW platform
SAP NW 7.01
liveCacheWindowsAIXHP-UXSolarisLinux Suse
For more information on topics discussed in this lesson, see the following references:Master Guide for SAP SNC 7.0 http://service.sap.com/instguides -> mySAP Business Suite Solutions -> SAP SCM
-> SAP SNC Using SAP SNC 7.0Upgrade Master Guide for SAP SCM 7.0 http://service.sap.com/instguides -> mySAP Business Suite Solutions -> mySAP
SCM -> Using SAP SCM 7.0 ServerMaster Guides for Industries (Using SNC 7.0) http://service.sap.com/instguides -> Industry Solutions -> Industry Solution
Master Guides -> SAP for Automotive/High TechSecurity Guide for SAP SNC 7.0 http://service.sap.com/securityguide -> SAP Supply Chain Management SAP
SNC Component Security GuideSolution Operation Guide for SAP SNC 7.0 http://service.sap.com/instguides -> mySAP Business Suite Solutions -> SAP SCM
-> SAP SNC Using SAP SNC 7.0
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SAP 2009 / Page 24
TransactionalData
Integration Aspects: SAP SNC
ERP
Master
Data
TransactionalData
CIF
SNC
PI
cFolders
BW
EP
APO - DPAPO - CMDS
EM
APO - gATP
APO - Dplymt
APO Alloc.
EM
PI
BW
SNC SUPPLIER COLLABORATION
SNC CUSTOMER COLLABORATION
TransactionalData
Extractor
UI
UI
Extractor
Internal
Internal
Via ERP SO
Internal/RFC
Internal/RFC
Internal
Process Infrastructure is the new name for XI (Exchange Infrastructure)
EM = Eventmanagement
BW = Business Warehouse, now part of SAPNetweaver
ERP is backend system (Enterprise Resoure Planning), it could be a non-SAP or SAP system
APO-CMDS = Advanced Planning Optimizer - Collaborative management of delivery schedules
DP = Demand Planning
Dplymt = Deployment
gATP = global Available to Promise
Alloc. = Allocation
EP = Enterprise Portal
CIF = Core Interface
SNC = Supply Network Collaboration, new name for ICH (Inventory Collaboration Hub)
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SAP 2009 / Page 25
SAP SNC Supply Network Collaboration
1. SAP SNC Fundamentals2. Customer Collaboration 3. Supplier Collaboration & Contract Manufacturing4. SAP SNC 7.0 Architecture & Integration5. SAP SNC Customer & Market situation6. SAP SNC Roadmap
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SAP 2009 / Page 26
Key Trends Impact On Business/ Technology Agenda
Impact of Shifting Emphasis Toward Network of Business Partners
Connecting business partners faster, easier and cheaper is a growth industry Software and technology providers have to offer a menu of ways to connect business partners Connectivity and on-boarding methods will likely become standardized over time
Increased need forcollaboration with partners
Synchronization and datasharing more intense
Partner on/off boarding
Our customers tend to focus on core capabilities, like design and marketing, and outsource things likemanufacturing, distribution and warehousing
Outsourcing of non-coreactivities is an everincreasing trend...
Globalization is everincreasing, both on thesales of finished goodsand sourcing of rawmaterials...
Innovation and coming up with newproducts faster, is a clear trend in most manufacturing industries
Competition is drivingproduct life cycles to become shorter and shorter...
Market Trends and Opportunities SAP SNC Collaboration and the Emergence of the Network of Business Partnersare Becoming Competitive Advantages for Most Companies
1
2
3
Collaboration becomes key
Operate in a 360global world
Product InnovationBecomes key
Increased need for real-timeand accurate communication of data
Technology and standards everincreasing
Shorter life cycles drive theneed for better collaborationwith partners involved in theprocess
Both small, medium and large enterprises are becomingincreasingly global, managing bothsupplier and customer relationshipacross continents
It is all about adaptability and managing the network SAP Network Supply Collaboration
Enhance visibility & productivity - Real time visibility of inventory, incoming supply, component consumption and carrier information
Increase Control & Flexibility - Change orders based on customer demands, and adjust supply chain strategies (e.g. postponement)
Collaborate successfully - Reduce lead times & cycle times through improved collaboration and communication
Increase Customer Service - Fulfill customer orders on time, with the correct items and quantities (Perfect order)
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SAP 2009 / Page 27
Main Features: Example: $2 Billion IM&C Company (from VE Study)
Reduced manual labor for supplier communication
Reduced errors in supplier communication
Reduced call volume from suppliers about PO, GR, etc.
Quicker communication with suppliers
Enabling proactive exception-based management via alerts
Reduced inventory levels
Reduced expediting
Reduced planning efforts via an SMI process
$1.5 million (annual)
$2.5 million (one-time)
$0.9 million (annual)
Total Savings:
$2.5 million one-time savings$2.4 million annual savings
Main Value-Adding Capabilties for SAP SNC Supplier Collaboration Change Your Communication Method: Switch from fax, phone calls and e-mails as the main communication methods with your suppliers. By using
SAP SNC, suppliers will have a one-stop-shop web-based tool to access and respond to supply chain, which will reduce human errors, increase speed and accuracy with which data is exchnaged between youand your suppliers. In addition, suppliers can respond to data feeds from SAP SNC, actions that will update your ERP system for you and in real time.
Have Suppliers Plan and Replenish for You: SAP SNC has capabilities that allow you to change the business process, allowing for supplier
responsability of planning and replenishment instead of yourself. SAP SNC offers business processes (likeSMI and DCM) that shift the replenishment actitivities from you to the supplier, still keeping your ERP in synch.
Enable Lean, or Pull-Based, Systems with Your Suppliers: SAP SNC also comes with capabilities that allow you to push thru any lean manufacturing initiatives you
may out to your external suppliers. Consumption-based replenishment capabilities exist in the shape of Kanban triggers and reorder point driven logic.
Monitor and Collaborate with Contract Manufacturers and Other Network Partners: Contract manufacturers represent a special type of supplier, and along with 3PLs, is something SAP SNC
has special capabilities to handle. Collaborate on a more granular level using BOMs and phases (routing) and find out where a certain product orders is in the process, and when it might be finished. Gain insightsto the supply and demand situation at a contract manufacturers plant, or a 3PL plant participating in theextended supply chain network.
Complement Existing EDI Connections with Collaborative Planning: Typically, large manufacturing companies that use SAP ERP (R/3) have hundreds, if not thousands, of
direct material suppliers. A well-know CP industry SAP customer has around 5000 direct material suppliersin North America, around 200 of them are connected via traditional EDI connections (i.e. the customersERP system talks directly to the suppliers ERP system). That means around 4800 suppliers are notconnected via EDI, and forecasts and orders are shared via e-mail, excel sheet attachments, phone calls, fax or simpler supplier portals over the web. However, when looking at the 200 suppliers that areconnected via EDI, most of the data shared is of short-term, execution character (POs, Change POs, PO Confirmations, Ship Notifications, etc) and not much data is shared on a longer term horizon. Therefore, SAP SNC can be positioned and used as the forecast, or mid to long term, collaboration platform that canexist in parallell to the existing EDI connection. SAP SNC and EDI connections can be complementary.
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SAP 2009 / Page 28
SAP SNC (ICH) Reference Customers
Customer Snapshot: 425 + Global Customers 200 + Active Customers Appr.75 Live Customers Appr.25 Reference Customers
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SAP 2009 / Page 29
SAP SNC Supply Network Collaboration
1. SAP SNC Fundamentals2. Customer Collaboration 3. Supplier Collaboration & Contract Manufacturing4. SAP SNC 7.0 Architecture & Integration5. SAP SNC Customer & Market situation6. SAP SNC Roadmap
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SAP 2009 / Page 30
Roadmap: Functional Growth SAP SNC
SAP ICH 4.0
Initial Supplier-Side Capabilities
2003 2004 2005 2007
SAP ICH 4.1
SAP ICH 5.0
SAP SNC 5.1
SAP SNC 7.0
2008
Addition of Customer Collaboration
Initial Outsourced Mfg Capabilities
Enhanced Customer Collaboration & Outsourced Mfg
Outsourced Mfg & Usability Focus
Key functional delta additions per release of SAP ICH/SNC Supplier Collaboration: SAP ICH 4.0:
Release Process SMI Process ASN
SAP ICH 4.1: PO Process Dynamic Replenishment Process (Forecast Comparison) Packaging and Label Printing (w/Bar Codes) added to ASN
SAP ICH 5.0: Kanban Process Contract Manufacturing Purchasing Process (Subcontract POs in SAP ERP terminology) Supply Network Inventory Process (supply, demand and inventory monitoring across plants and
business partners) Delivery Control Monitor Process Goods Receipient User Menu (allows for dedicated user menu for goods receipients, like 3PLs or
contract manufacturers)
SAP SNC 5.1: Work Order Collaboration Process Invoicing (to support existing purchasing processes, closing the loop in the procure-to-pay cycle) Harmonization, automation and increased flexibility for SMI scenarios (more configuration, more
algorithms, more automation capabilities) PO Work List (to enable mass maintenance of PO items) EM integration PLM cFolders integration (tighter integration with cFolders)
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SAP 2009 / Page 31
Roadmap: SAP SNC (1)
SAP ICH 4.0Supplier Collaboration:
Supplier-side Collaboration Processes:
SMI
Release Process
ASN Maintenance
Alert Monitor
SAP ICH 4.1Supplier Collaboration:
Basic Purchase Order Process
Forecast Visibility Collaboration
SMI Process enhanced w/ PO
ASN Enhancements (Packing)
Release Process Comparison
BW Reporting KPIs
Customer Collaboration:
Responsive Replenishment Process New VMI Solution
SAP ICH 5.0Supplier Collaboration: Supply, Demand & Inv.
Visibility at Contract Mfg. Subcontract POs w/ comp. Kanban Replenishment PO Process Improvements SMI Process For Multiple
Suppliers Delivery Control Monitor
Reorder PointCustomer Collaboration: Responsive Replenishment Enhancements for SAP AFS
SAP SNC 5.1Supplier Collaboration: Work Order Collaboration for Contract Mfg Milestone Tracking & Component Consumption Supply, Demand & Inv Monitoring for Contract Mfg Multiple Business Partner Visibility Invoice and Credit Memo PO Process User Productivity Work List SMI Process Replenishment Automation & AlgorithmsCustomer Collaboration: Min/Max Replenishment ATP, gATP Checks Demand Collaboration Configurable Process Flows
2003 200720052004
The SNC Roadmap shows that the processes, functions & features delivered by SAP Supply Network Collaboration (SNC) were/are constantly growing.
Please note that SNC is the new name for ICH (Inventory Collaboration Hub)
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SAP 2009 / Page 32
Roadmap: SAP SNC (2)
SAP SNC 7.0
Supplier Collaboration:
Manufacturer Part Number Extension
File Transfer functionality
PO Enhancements
Supplier Self-Service User Management & Activity Monitoring
Quick View In-Context Dashboard w/ Business KPIs and Drill-Down
User Roles by Business Process, incl. Role-Based Menus
Displaying of Product Configuration data and Batch Classification data
SOA Enablement - Continued
Improved Integration with ERP to come with ECC 6.0 (various EHPs)
Various Incremental Process Enhancements
2008
SAP SNC 7.0 Features:
Major Developments in SNC 7.0 are derived out of the High Tech industry.
Some are coming from the Mill and Consumer Goods area. CP: Enhancments in Customer Collaboration Mill: Displaying of Product Configuration data and Batch Classification data
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SAP 2009 / Page 33
Roadmap: SAP SNC (3)
SAP SNC 7.0
Outsourced Manufacturing: New stock categories in SAP SNI and new SNI Inventory Overview screen SAP ERP and SAP SNC Integration Enhancements in Outsourced Manufacturing External Processing with WO Batch tracebility in SAP SNC Introduction of Work Order Worklist in SAP SNC
Customer Collaboration:
Decision Support Enhancement of RR Overview Monitor, added key figures
Additional Mass Maintenance of Location Products Added
Additional Rounding Logic for Replenishment Orders and TLB
Added selection criteria, safety stock calculations and improved promotion handling
2008
SAP SNC 7.0 Features:
Major Developments in SNC 7.0 are derived out of the High Tech industry.
Some are coming from the Mill and Consumer Goods area. CP: Enhancments in Customer Collaboration Mill: Displaying of Product Configuration data and Batch Classification data
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EhA EhBEhC EhDEhE EhF
EhA EhBEhC EhDEhE EhF
MES Integ. EBPP
Sales order
HCM forms
Credit Report
Budget Executi
on
Enhancement Package
User interface
Functionality
Enterprise services
Sales orderManagement
User interface
Enterprise services
Functionality
Traditional Upgrades Enhancement Packages
All or none Affecting the enterprise Requires thorough regression testing Business case for entire release
Pick and choose Self-contained innovation Isolated testing effort Business case for target process
Efficiency to Drive InnovationEnhancement Packages Eliminate Major Upgrades
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Driving Synergies Across the SuiteDelivering on one Date, Innovation Across the Applications
20102009200820072006
EhP1ERP 6.0
CRM 7.0
PLM 7.0
SCM/SNC 7.0
SRM 7.0
Sustainability platform
Supply chain & manufacturing adaptiveness
Advanced shopping experience...
Holistic planning and performance mgmt
Demand-driven product & supply chain effectiveness
Product as a service management
Integrated product development
Supply chain efficiency
World-class operations
(Selected) enhancements* across the Suite
Business Suite release strategy
Synchronized Suite release
Enhancement Packages across the Suite
* Topics subject to change
EhP2 EhP3 EhP4 EhP5 EhP6
EhP1
EhP1
EhP1
EhP1
EhP2
EhP2
EhP2
EhP2
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Continuous Innovation Around a Stable Core
Stable core defined to be SAP ERP 6.0 today, extended to core applications of SAP Business Suite in 2008
Leverage proven functionality
Continuous innovation delivery via enhancement packages, selectively adoptable
Continuous service enablement
Uniform availability of industry best practicesStable Core
(SAP enhancement package 1 for)SAP NetWeaver 7.0
(as foundation for SAP Business Suite)
SAP Business Suite
ERP 6.0
CRM7.0
PLM7.0
SCM7.0
SRM7.0
Industries
SAP Enhancement Packages for Applications
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You are now able to:
z Explain the SAP SNC 2008 Essentialsz Know the SAP SNC 2008 Market & Customer
situation
z Understand the SAP SNC 2008 High level delta functionality
SAP SNC Supply Network Collaboration
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